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The main purpose of the dynamicMenu is to build a menu "on-the-fly" from XML code that is fed back to the control through a VBA callback.
The dynamicMenu is, without a doubt, the crown jewel of flexibility in the Ribbon. Although it can take a fair amount of work to set up, the dynamicMenu offers unparalleled options that give it a major role in many Ribbon customizations. It is so robust that it is a shame to not find comparable functionality in both tabs and groups.